NZ Oil & Gas (NZO)

[Sideshow Bob]

t.....if they pay it straight back out to ECH holders, then that is about 1.5c AUD per ECH share.

Haha no such luck. ;) Announcement just said they were going to receive $3.5m AUD from CUE.

Cash on hand up by $3.5m it is then......

[blackcap]

Haha no such luck. ;) Announcement just said they were going to receive $3.5m AUD from CUE.

Cash on hand up by $3.5m it is then......

Good.

They should not be paying dividends of any kind to NZ shareholders, unless they can attach imputation credits.

[fish]

Good.

They should not be paying dividends of any kind to NZ shareholders, unless they can attach imputation credits.
Not only would a share buy-back on market be tax efficient we would likely see to see a big increase in trading .

[Toddy]

CUE just reported and paying out a 1cps divvy.

https://research.iress.com.au/IDS/old/20240823/02842416.pdf?uid=D6E971A9021CBFFC3CB46912EF86890AE 5670000926AED1A123BE640093D250091850000&ppv=

ECH have an announcement out re the CUE divvy - just can't see it yet.....if they pay it straight back out to ECH holders, then that is about 1.5c AUD per ECH share.

ECH is all about FY25. The money will come rolling in from increase in onshore Australian assets and the generous fixed price gas Contracts from the Government.
The FY24 accounts will include the Kupe duster and the intermittent NGP disruptions which are now history.

Shareholders cannot complain, we are more than earning returns to cover the cost of funding and are getting a free ride on the drilling program.
At some stage we will hit the jackpot if we keep on drilling at the current rate.

[Sideshow Bob]

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02844197-3A648994&v=fc9bdb61fe50ea61f8225e24ce041a0e155a9400

$0.015 dividend not imputed or franked.

15233

[blackcap]

Not only would a share buy-back on market be tax efficient we would likely see to see a big increase in trading .

Exactly, that would have been the better outcome. Unfortunately they are paying a dividend.

[Toddy]

The production blocks and sales platform are all go for 25.

Have been a bit unlucky with Kupe and Booth.

The dividends will keep on coming and will easily beat the cost of funding with an entry price of AUD 36 cents.

The dividends tax rate would hurt if you were a high earning PAYE earner. Hopefully as earnings grow then this will open up more options for wealth distribution.

Well done management. This Company has transformed itself and I Iook forward to the future.

[fish]

Exactly, that would have been the better outcome. Unfortunately they are paying a dividend.

The dividend is just the starters,
the main is yet to come
They are committed to improving the sp and a buy back is the only sure way

[Sideshow Bob]

The dividend is just the starters,
the main is yet to come
They are committed to improving the sp and a buy back is the only sure way

Wouldn't OG have to sell into the buyback? Keep the same % holding??

Volumes traded on the ASX are still so thin. Best day has been 125k, and many days under 10k shares.

[mike2020]

Wouldn't OG have to sell into the buyback? Keep the same % holding??

Volumes traded on the ASX are still so thin. Best day has been 125k, and many days under 10k shares.

Trading in CUE is well up on what it was, OGOG are holing a little too much of ECH.

[Sideshow Bob]

Trading in CUE is well up on what it was, OGOG are holing a little too much of ECH.

3c of dividends for the year when they are trading at 10-11c is pretty attractive.

[mike2020]

3c of dividends for the year when they are trading at 10-11c is pretty attractive.

One more cent and its pretty much 4 cents in a 12 month period. CUEs MC nearly a match for ECH now. Paying divs like that must eventually inflate the share price of CUE...why would OGOG want that?

[blackcap]

3c of dividends for the year when they are trading at 10-11c is pretty attractive.

How sustainable is a 3-4c payout per annum? If they are giving capital back, well that defeats the purpose.

[Toddy]

CUE is now at 12 cents per share. When the dividend was announced 6 months ago the price was around 5 cents.

ECH owns 51 percent of CUE.

[Sideshow Bob]

CUE is now at 12 cents per share. When the dividend was announced 6 months ago the price was around 5 cents.

ECH owns 51 percent of CUE.

CUE shareholding worth 18.75c per ECH share.

Net asset backing is 76.9c as at 30/6.

Net tangible asset backing was 68.3c as at 30/6.

[JBmurc]

CUE shareholding worth 18.75c per ECH share.

Net asset backing is 76.9c as at 30/6.

Net tangible asset backing was 68.3c as at 30/6.

I purchased my first lot of ECH shares today ... the continued rise in CUE shows just how undervalued ECH is ...better list of projects + Capital base yet valued a couple million more than the smaller CUE?

ECH holds some A$41.5mill of CUE shares ... + A$38.6mill cash balance- of ECH A$87mill cap ...

as I've said before if they could exit CUE(with their INDO focus no thanks!!) that would be one nice war chest to say do a scrip deal and secure someone M&A like a GAS:ASX "State Gas"(Mktcap=A$16mill) in QLD with • 2630 km2 of combined southern Bowen Basin acreage• 534PJ^ of 2C Nat gas resource in place

then use the cash pile(along with additional capital raised) to leverage into BOWEN Basin developments GAS:ASX already has JV with Santos on two large permits with a local Gas pipeline running within landholding to access east coast Gas markets..that would be a great exploration project

This would be a great pathway to serious growth for ECH... but of course, OG Energy would have to be happy to see itself diluted downwards towards 50.1% ideally !!

[fish]

I purchased my first lot of ECH shares today ... the continued rise in CUE shows just how undervalued ECH is ...better list of projects + Capital base yet valued a couple million more than the smaller CUE?

ECH holds some A$41.5mill of CUE shares ... + A$38.6mill cash balance- of ECH A$87mill cap ...

as I've said before if they could exit CUE(with their INDO focus no thanks!!) that would be one nice war chest to say do a scrip deal and secure someone M&A like a GAS:ASX "State Gas"(Mktcap=A$16mill) in QLD with • 2630 km2 of combined southern Bowen Basin acreage• 534PJ^ of 2C Nat gas resource in place

then use the cash pile(along with additional capital raised) to leverage into BOWEN Basin developments GAS:ASX already has JV with Santos on two large permits with a local Gas pipeline running within landholding to access east coast Gas markets..that would be a great exploration project

This would be a great pathway to serious growth for ECH... but of course, OG Energy would have to be happy to see itself diluted downwards towards 50.1% ideally !!

At long last investors have seen the value of Cue which has now rewarded its shareholders this year with big dividends and a doubling in sp .
the market has lagged with appreciating the value of ECH_and I would not be surprised if the sp does the same as CUE before the end of its current financial year -profit will be significantly higher .

[JBmurc]

At long last investors have seen the value of Cue which has now rewarded its shareholders this year with big dividends and a doubling in sp .
the market has lagged with appreciating the value of ECH_and I would not be surprised if the sp does the same as CUE before the end of its current financial year -profit will be significantly higher .

I seen value in CUE years ago 2020-21(and years prior) buying so much became my largest holding ... back when paying a dividend wasn't on the table ..it was clear to me and most holders CUE needed to return some capital to S/H yearly and shift Company image from micro-cap O&G play to "Energy Yield play"

I sadly sold out year and a half early so was gutted and happy for long-suffering S/Hs at the same time... esp as many of us had contacted Matt and put forward the case for the shift to being a energy yield stock to break the non interest... the company goes from just another micro-cap O&G stock to one of the limited ones playing a yield !!!

I'm 100% sure had CUE just HELD the cash the SP wouldn't have risen from flatlining 5-6c to 10c+ market sentiment was just so poor ...which is kind of interesting as it's just removing Capital from the company balance sheet ... which going forward will be needed for keeping production in place to increasing investment Mahato won't last forever (CUE Key FCF asset) but S/H love getting paid so value is added!

In ECH case with OG Energy backing how do we see some real market attention, a step change that CUE created with the change in tack...

#1-easy to FIX issue "Liquidity" ... ECH only has 15% free-float from TOP20 and I'm sure a good-percent of that 15% is held by long-suffering Kiwi retailers that see their shares as a LONG-term hold till SP is an attractive enough price to sell ...so on the ASX ECH is just not in the conversation of 99.99% Sophs/instos/pro's/brokers why would it be..next to nil liquidity... and if you have nil bigger end town investors talking about it then good luck seeing the buying pressure to drive much higher SP

.. my latest thought... WTF does OGOG want from the investment they are the cause of the ECH liquidity issue with 71.7% of the shares... more recent operations give me hope ECH wants to grow its asset base into AUS NAT gas ..great high pricing great profitable LNG infrastructure in place great place to invest..

So if ECH + OGOG goal was to see much higher market attention for the company going forward... make it an attractive place to invest larger amounts of capital!!

One option rough numbers ...ECH trades a good portion of its CUE shares to OGOG for a reduction in its holding in ECH... say from 1.6mill shares to 1.12mill so OGOG control goes from 71.7% to 50.1% which would be a reduction of 48mill ECH shares held @ 42c cost to ECH of 20.1mill in CUE shares @11.5c ... which roughly would see ECH holding in CUE reduce to 25% ...(or maybe OGOG won't do the deal unless controlling stake so give them the whole 50.1% of CUE they pay up 20.1mill in cash to ECH then OGOG goes to 50.1% in both ECH+CUE)

then take those 48mill ECH shares gifted back to the company and float them off @ 42c raising A$20.1mill in cash... or use the scrip to purchase another company that's at present very undervalued adding thousands more S/H adding liquidity and assets

If OGOG does go to the 50.1% in both ECH&CUE and we receive not only 48mill shares back but A$20mill+ in cash

then ECH could create MASSIVE WAR chest and gain major ASX attention as a predator... if 48mill floated off ......S/Hs(not OGOG) + sophs + pros + insto's etc one could see ECH command A$78mill in Cash balance and if this was the case I'm sure the SP wouldn't be 39c but much higher..

Of course ECH would no longer be controlling stakeholder in CUE or maybe not a holder at all...but why would that be much of an issue as it seems T/O of CUE is never going happen why run twin companies with similar boards such a waste of capital that could be invested while O&G sector is so very undervalued.

ECH could buyout via scrip TEG for peanuts and then go for GAS add more Cash+projects on the cheap... I don't think it would be that hard of sale to their suffering S/Hs

Disc-Holding GAS,ECH

[fish]

I seen value in CUE years ago 2020-21(and years prior) buying so much became my largest holding ... back when paying a dividend wasn't on the table ..it was clear to me and most holders CUE needed to return some capital to S/H yearly and shift Company image from micro-cap O&G play to "Energy Yield play"

I sadly sold out year and a half early so was gutted and happy for long-suffering S/Hs at the same time... esp as many of us had contacted Matt and put forward the case for the shift to being a energy yield stock to break the non interest... the company goes from just another micro-cap O&G stock to one of the limited ones playing a yield !!!

I'm 100% sure had CUE just HELD the cash the SP wouldn't have risen from flatlining 5-6c to 10c+ market sentiment was just so poor ...which is kind of interesting as it's just removing Capital from the company balance sheet ... which going forward will be needed for keeping production in place to increasing investment Mahato won't last forever (CUE Key FCF asset) but S/H love getting paid so value is added!

In ECH case with OG Energy backing how do we see some real market attention, a step change that CUE created with the change in tack...

#1-easy to FIX issue "Liquidity" ... ECH only has 15% free-float from TOP20 and I'm sure a good-percent of that 15% is held by long-suffering Kiwi retailers that see their shares as a LONG-term hold till SP is an attractive enough price to sell ...so on the ASX ECH is just not in the conversation of 99.99% Sophs/instos/pro's/brokers why would it be..next to nil liquidity... and if you have nil bigger end town investors talking about it then good luck seeing the buying pressure to drive much higher SP

.. my latest thought... WTF does OGOG want from the investment they are the cause of the ECH liquidity issue with 71.7% of the shares... more recent operations give me hope ECH wants to grow its asset base into AUS NAT gas ..great high pricing great profitable LNG infrastructure in place great place to invest..

So if ECH + OGOG goal was to see much higher market attention for the company going forward... make it an attractive place to invest larger amounts of capital!!

One option rough numbers ...ECH trades a good portion of its CUE shares to OGOG for a reduction in its holding in ECH... say from 1.6mill shares to 1.12mill so OGOG control goes from 71.7% to 50.1% which would be a reduction of 48mill ECH shares held @ 42c cost to ECH of 20.1mill in CUE shares @11.5c ... which roughly would see ECH holding in CUE reduce to 25% ...(or maybe OGOG won't do the deal unless controlling stake so give them the whole 50.1% of CUE they pay up 20.1mill in cash to ECH then OGOG goes to 50.1% in both ECH+CUE)

then take those 48mill ECH shares gifted back to the company and float them off @ 42c raising A$20.1mill in cash... or use the scrip to purchase another company that's at present very undervalued adding thousands more S/H adding liquidity and assets

If OGOG does go to the 50.1% in both ECH&CUE and we receive not only 48mill shares back but A$20mill+ in cash

then ECH could create MASSIVE WAR chest and gain major ASX attention as a predator... if 48mill floated off ......S/Hs(not OGOG) + sophs + pros + insto's etc one could see ECH command A$78mill in Cash balance and if this was the case I'm sure the SP wouldn't be 39c but much higher..

Of course ECH would no longer be controlling stakeholder in CUE or maybe not a holder at all...but why would that be much of an issue as it seems T/O of CUE is never going happen why run twin companies with similar boards such a waste of capital that could be invested while O&G sector is so very undervalued.

ECH could buyout via scrip TEG for peanuts and then go for GAS add more Cash+projects on the cheap... I don't think it would be that hard of sale to their suffering S/Hs

Disc-Holding GAS,ECH

I feel you lost your patience and sold out of cue just as they were on the cusp of making and returning big profits .
In effect OGOG has controlling interest over both CUEand Echelon and it is echelon that does a lot of Work and research for Cue as well as having the same directors appointed by OGOG .
They are shrewd and trustworthy.
I agree with you the liquidity is abysmal and needs fixing .
Few buyers in the market and few sellers .
If the sp was more realistic-currently 1/2 the nta I know several long term holders that would sell down some holdings .
If the market is not playing fair to Echelon then the simple solution is a market buyback-performed slowly until the sp reflects the value .
I feel sure we would then see liquidity improve